Vale S.a. · BMFBOVESPA:VALE3
Vale — Investor Presentation (May 2018)
11 slides from Vale's investor presentation, May 16, 2018
Slide 1: Forward-looking statements and cautionary note
“This presentation may include statements that present Vale's expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct
Slide 2: Vale: a premium, flexible and predictable company
3 Vale: a premium, flexible and predictable company • Fe “flight to quality” (pollution and productivity) • Ni Class I premium • Broad Fe and Ni product portfolio • Supply chain management - Capacity higher than production - Adjustment of lower grade production • Optionality on nickel EV Revolution
Slide 3: "Flight to quality" is a structural trend
4 “Flight to quality” is a structural trend Premiums and discounts 65%-62% 58%-62% US$/t 30 20 +US$18/t 10 0 US$ 46/t -10 -20 -US$ 28/t -30 -40 Source: Bloomberg and Mysteel until May 11th • Supply side reform • Depletion in Australia and China • Sustained world steel demand
Slide 4: Market segmentation leads to lower price volatility
5 Market segmentation leads to lower price volatility Platts 62% Fe prices histogram May-16 to April-17 May-17 to April-18 % of frequencies in the price bracket % of frequencies in the price bracket 47% 34% 19% 16% 40's 50's 60's 70's 80's 90's 40's 50's 60's 70's 80's 90's 1 Excluding the 5% outlie
Slide 5: Flexible iron ore product portfolio maximizing margins
6 Flexible iron ore product portfolio maximizing margins Iron ore (IO) production volumes¹ Iron ore (IO) sales breakdown IO / pellets price realization gain Mtpy US$/t Northern System Nominal capacity 450 Premium products² Others Iron ore VIU and quality Pellets adjustment ~400 ~400 ~390 1Q17 4Q17 1
Slide 6: Vale's nickel product mix is set to capture higher premiums
7 Vale’s nickel product mix is set to capture higher premiums Nickel production volume Nickel sales breakdown Class I nickel premiums Ktpy US$/t Updated production plan1 Previous production plan Class I Class II battery-suitable Class II + Intermediates 1,390 -45 -54 -33 1Q17 4Q17 1Q18 2018E 2019E 2
Slide 7: Constant improvements of performance
8 Constant improvements of performance Ferrous Minerals EBITDA /t Base Metals margins Coal proforma production cost2 (US$ 140 - 160 million) • S11D • Moatize and Nacala ramp-ups • Cost management program • Cost management program • Integrated planning • Supply chain optimization • Long Harbour ramp-
Slide 8: Vale improved its corporate governance
9 Vale improved its corporate governance Single class of shares Dilution of control Election of two independent board members Ahead of expectations in the evolution of governance listing) (Novo Mercado
Slide 9: Shareholder value creation
10 Shareholder value creation Slashing debt and paying higher dividend Optionality in EV market Better performance everywhere and higher price realization Sustainable iron ore premiums and discounts Lower volatility in prices Predictable
Slide 10: Shareholder value creation
Shareholder value creation Sustainable iron ore premiums and discounts Lower volatility in prices Optionality in EV market Slashing debt and paying higher dividend wi Von
Slide 11: Signatures
Table of Contents Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: May 15, 2018 Vale S.A. (Registrant) By: /s/ André Figueiredo Director of Invest